ARTICLES - Strategic HRM

HR: Seeking success in times of paradox
© Ritesh Agrawal


Introduction

There is a famous anecdote of Akbar and Birbal, the famous King-Minister duo of 15th century Indian history . Once King Akbar got angry with Birbal. He ordered that Birbal should be executed . Naturally Birbal got worried . He tried to get pardon in several ways but King was firm-- No pardon.! So Birbal called a friend and requested "Go to King and make a proposal !". "What kind of proposal.?" friend was amused. Birbal replied, "Tell the King that I would train his favorite horse to fly in 12 months -- and he should pardon me in exchange..". The friend shrieked "Are you crazy! How would you make a horse fly even if the King agrees ?" Birbal chuckled " Oh No, no ! You did not quite get me. You see: what do I lose anyway ? In the next 12 months , the King may die --good chance of getting pardon from the successor ! or in next 12 months , the horse may die -- I get another horse and another twelve months . Or in next twelve months , I may die ---in which case I need no pardon . Or who knows , may be in the next twelve months , the horse may somehow learn to fly ! There is always a chance.................."

What is the underlying message in this story? Pathetic perception of people about Training ?....No!! This story, sarcastic as it is, not only speaks of negative perceptions of people about training but also about HR practices as such. "How....?" Because, bluntly put, it is a fact that most people still equate HR practices with merely training. They consider HR Department as the one charting out training programs for employees and doing unimportant (?) things like that.

The great HR paradox:

This kind of perception about HR could perhaps be tolerated about 10 years ago, when hardly anybody talked about HR strategies in Industries or appreciated the concept.. But today, when Human Resource Management has come to stand as a separate field in the management profession itself and almost every progressive industrial organization has an HR department, one, probably can not find a better example of HR paradox than this. I call it as "The Great HR Paradox" acknowledging the importance of HR at one hand while summarily undermining its efficacy at the other.. The question is: How does one survive , surpass , succeed and thrive in such times of paradox. I have attempted to answer this question in the following pages with specific reference to HR practices.

To begin with, Human Resource management, in the organizational context, is a process by which the employees of an organization are helped in a continuous planned way, to :acquire or sharpen capabilities to perform various functions associated with their present or expected future roles, develop their general capabilities as individuals and discover and exploit their own inner potentials for their own organizational development purposes & develop an organizational culture in which supervisor subordinate relationships , team work, and collaboration among sub-units are strong and contribute the professional well-being ,motivation and pride of employees.

I conducted an extensive employee survey in two large Private sector Indian organizations, namely TELCO ( an auto giant ) and ESSAR STEEL ( a Steel Giant) to find out the perception of junior and middle level employees about various HR practices. The survey results.(Appendix 1) show that at least three predominant paradoxes related to HR practices, exist, namely :

  1. The Training paradox
  2. The Performance Appraisal paradox and
  3. The Communication paradox

All three are closely linked with each other and lead to organizational success. A model is suggested which shows in form of a flow chart how surviving these 3 paradoxes would lead to an organization to greater success. I, take up these paradoxes, one by one and discuss their one or two most important aspects with suggestions.

1. The Training

All three are closely linked with each other and lead to organizational success. A model is suggested which shows in form of a flow chart how surviving these 3 paradoxes would lead to an organization to greater success. I, take up these paradoxes, one by one and discuss their one or two most important aspects with suggestions.

1. The Training

1. The Training Paradox:

There is no denying the fact that the demand for training and re-training in organizations is at its peak and growing. Several key factors that drive this need are the dawn of newer and newer technologies, an ever-expanding international market place for goods and services and cut-throat competition for markets etc. But quite surprisingly, this is also a fact that training budgets are shrinking or at least not increasing in the proportion of the organization growth. Companies want training departments to help them answer today’s challenges- but to do it on a bare bones budget. This is what I term as "Training paradox".

In such a scenario, when the requirements for training are plenty but budget is minimal, providing training becomes a difficult task. "But not impossible": Here are a few ideas for cutting back on costs while still moving forward with high-quality training:

  1. The first and foremost: identify and assess the correct training needs. Sending employees on unnecessary and expensive trainings is just a waste.
  2. Do not overlook the local training providers as a cost saving resource. Do not run after "big training providers".
  3. Do negotiate the high costs in case of out-sourcing. Save every penny as far as you can.
  4. Explore the newer ways of training. Explore in-house training providers.
  5. Consider Computer as the potential source: Never forget that Net is free.
  6. Consider offering training in partnership with local giant organizations.(for small industries)
  7. Use experts expertly. Ensure that training program is used to maximum extent.
  8. Emphasize training of new recruits.
  9. Consistently evaluate training effectiveness. Consistent improvement is a must.
  10. Create an attitudinal change in workers on the relevance of training

2. The Performance Appraisal paradox:

Performance Appraisal has been regarded as a necessary evil. All the books say that a company should have a performance appraisal system, employees often express the desire for one and businessmen are keen to find out about them. Why then is performance appraisal one of the areas of management most commonly complained about by employees and managers alike? This, probably summarizes what I mean by "Performance Appraisal Paradox".

The major mistake made by companies is the failure to recognize what constitutes a performance appraisal system. It certainly is not just about a set of forms that must be completed by various individuals. Nor is it just an opportunity to have an annual chat with the boss to ‘get it all off your chest’. Individual performance appraisal is in many organizations an undisputed fact of life, a supposedly necessary tool for a healthy business.

Among the commonly raised complaints about a PA system is the role played by appraiser’s subjectivity. It is necessary to understand the impact of such subjectivity in appraisal on an employee., especially when he is appraised negatively just because his appearance is not liked by the boss or if he does not necessarily subscribe to boss’s political ideology or if he belongs to the color/religion/caste not liked by the boss.......The list is endless. The point is :this kind of partial Performance Appraisal ,ignoring one’s on -the-job performance , tears his confidence and motivation apart.

I contend that no matter, howsoever objective Performance Appraisal system is developed, employees would still complain about subjectivity. However, the frustration among employees that follows the appraisal results can be minimized to a great extent with help of free and frank communication.

I suggest that the appraiser should convene an open meeting with the appraisees to discuss the performance of all employees before, during and after PRD. In such meetings, everyone should be encouraged to comment on each other’s achievements and areas requiring improvement. The idea behind proposing such a meeting is that an appraiser should be given a chance to tell the truth and reality behind the curtains to his subordinates. If he is confident that he has been fair and objective while appraising, why not tell and take others in confidence about what has made him rate the subordinates the way he has done? Also, there is a strong possibility that subordinates themselves would come to a consensus as on who is the most eligible of them all to be promoted and why there can not be more than a specific no of promotions.

Would this change help us survive the "PA paradox"?? Yes! I believe because, with this open flow of thoughts, employees would regain faith in a PA system, their satisfaction then leading to better organizational performance.

3. The communication paradox:

A very common observation that I found, is that Line managers do not believe they benefit from HR department. While many studies have confirmed that effective HR practices strengthen managers’ communications with employees and can facilitate their growth. In turn, these improvements strengthen motivation and productivity. This is the Communication paradox.

Managers and their subordinates feel a number of conflicts within their routine activities. While, we all need and want to know "how we are doing" in respect to previous personal performance, we are often sensitive to our own and others’ biases. The ambiguities of observation and the politics of blame can undermine the relationships upon which effective service depends. We are, also painfully reluctant to deal with criticism that impacts on self-esteem. Mission statements, through which organizations express their values, bear witness to importance of such sensitivities. They usually not only articulate the organization’s quest for excellence but also affirm each employee’s importance in pursuing it.

The Role of a HR manager doesn’t end at merely administering a routine Performance Appraisal exercise twice a year and afterwards go in a deep slumber. I contend that there is a lot more that can be done. A HR manager is link between the organizational goals and the line employees. The connecting link is HR strategy, which emanates from business strategy. HR professionals can play a pivotal role in facilitating productivity relationships between managers and employees. A HR manager keeping a "big picture" in mind can help managers hire the best people, retain them and train them effectively. The HR dept. can set this new agenda in 4 ways:

  1. Redefine the manager’s job
  2. Redefine the way work is done,
  3. Do more in-line coaching and less class room training and
  4. Institute a genuine Feedback system

 

Conclusion:

The whole approach towards HRM has undergone a sea change over the years and is continuing to do so. In the initial stages, HRM, guided by humanistic considerations, was seen as a philosophy that development of people in an organization is a prime responsibility of management. This approach took the view that human beings should not be seen as a resource rather employee development is the responsibility of the employer.

Over the years, emerged a modified: partly humanistic and partly business oriented approach. which regards development of people as the most important asset for improving performance of the organization. In this respect the emphasis shifted to developing roles, role relationships, appraisal systems, training, job design and the like. The idea was that HRM is important for the growth of the Organization and is a good investment for the future.

I contend that, In the coming years, HR strategy would have to become more aligned with business strategy. . It would have to be so designed that it identifies persons who will move to higher positions and groom them for future careers. The high performers would have to be given special consideration This approach holds the assumption that the corporate future is important and special care has to be taken to groom those who will assume leadership roles.

A Suggested Model for successful HR strategy

Appendix 1

A Survey questionnaire

Name________________ Orgn. / Designation __________________ Date _______________

 

Instructions for filling up the questionnaire :

1: Strongly disagree , 2: Moderately disagree 3: No firm opinion 4: Moderately agree 5 : Strongly agree

Sr.

The attribute

Response

     
  The HR department  
1 Do you think that HR dept. is taken seriously in your organization 1 2 3 4 5
2 Do you think that HR dept. is required /necessary 1 2 3 4 5
3 What do you think is the job of HR guys 1 2 3 4 5
4 Do you think that HR dept. does not help in organization success 1 2 3 4 5
5 Any other suggestions  
     
  The Performance Appraisal System  
1 Do you think "Performance Appraisal is required / necessary 1 2 3 4 5
2 Do you believe that PA form in your company is well designed 1 2 3 4 5
3 Does it cover all the relevant points 1 2 3 4 5
4 Is PA taken seriously in your department 1 2 3 4 5
5 Do you think subjectivity plays an important role in assessment 1 2 3 4 5
6 Do you believe that PA achieves its objectives 1 2 3 4 5
7 Should PA system be scrapped 1 2 3 4 5
8 Any other suggestions  
     
  The Training System  
1 Do you think "Training" for everyone is required / necessary 1 2 3 4 5
2 Are "Training programs in your company well designed 1 2 3 4 5
3 Were you sent for all the training programs which were identified 1 2 3 4 5
4 Is "Training" taken seriously in your department 1 2 3 4 5
5 Has the training budget increased over the years proportionately 1 2 3 4 5
6 Do you think that training programs conducted are effective 1 2 3 4 5
7 Any other suggestions  
     
  Communication effectiveness  
1 Do you think "effective communication" is a must. 1 2 3 4 5
2 Do you think that "communication" is effective in your dept. 1 2 3 4 5
3 Do you fulfill your role in this regard religiously 1 2 3 4 5
4 Do your superiors pass on all relevant information to you. 1 2 3 4 5
5 Any other suggestions  
     

Methodology:

This survey questionnaire was administered to 40 junior and middle level executives (20-20) of both the organizations.

References:

  • Rao,T.V., "Readings In Human Resource Development", Oxford and IBH Publishing Co., New Delhi 1991, p. 27
  • Callahan, Madelyn,R. "Training on a shoestring", Development Journal (STD), Vol. 49, Issue 12, December 1995, p. 18-23
  • Peter Scholtes, "An Elaboration on Deming’s Teachings on Performance Appraisal"., Madison, Joiner Associates,1987, p. 31
  • Stan Lester, "Appraising the Performance Appraisal",Journal of Training and Development" November 1993, p 11
  • Daniel Jones,"Paying for satisfaction",HR Focus,Vol.73,issue 6,June 96,p 10-11
  • Sam Burke,"Who is minding the middle manager",HR Focus, Vol.73,issue 10,Oct 96,p 12-13
  • Sinha, Dharni P.et al, "Aligning Human Resource Processes : Challenges of development" 

 

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